Cable: More Sideways To Come


Cable found resistance in the past week around 1.66 area, from where we saw more than 400 pips of decline. As such, recovery from 1.5780 July was just another three wave pattern, similar to what we have seen in the past months, as marked on the chart.

Well, if we take a look at the shape of the price action from late 2010, then we can see a triangle pattern with wave (E) underway that should remain above 1.5780. So as long this level hold, bullish continuation remains in play.

Triangle Characteristics:

A triangle appears to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility. The triangle pattern contains five overlapping waves that subdivide 3-3-3-3-3 and are labeled (A)-(B)-(C)-(D)-(E). A triangle is delineated by connecting the termination points of waves A and C, and B and D.

GBP USD Elliott Wave Analysis August 29 2011

Guest post by Gregor Horvat

For more analysis vist us at or follow us on twitter.

Get the 5 most predictable currency pairs

About Author

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and His feature articles have been published on,, Action forex, Forex TV, Istockanalyst, ForexFactory,,, etc. He recently won the award on for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

Comments are closed.